ARCS Of Progress – The Arctic World In 2050

Editorial note: This article was first published at Arctic Progress in February 2011. In the next few weeks I will be reposting the best material from there.

The Arctic to become a pole of global economic growth? Image credit – Scenic Reflections.

Behold! Far north along the shores of the Arctic a quiver of upspringing settlements fringes the coast. Boats swarm around canning factories, smoke flutters above smelters, herds of reindeer dot the prairies… And here or there, on every street-corner, glimmer out the lights of theaters where moving-pictures entertain white people through the sunless weeks of the midwinter dancing-time, the singing-time, the laughing-time of Eskimo Land.

- Northward ho!: An account of the far North and its people.

In 2003, Goldman Sachs economist Jim O’Neill wrote the now famous paper Dreaming with BRIC’s, predicting that Brazil, Russia, India and China would overtake the developed G8 nations within a few decades and make astounding returns for faithful investors. The BRIC’s concept entered the conventional wisdom, spawning a host of related acronyms (BASICBRICSA, etc) – and if anything, realizing its promise well ahead of schedule. Last year, China’s real GDP possibly overtook America’s, and Russia’s approached Germany’s.

Yet for all their successes, the BRIC’s may not fulfill their expected roles as the stars of the global economy in the 21st century. The level of education is horrid in Brazil and atrocious in India; without the requisite human capital, these two countries will find it difficult to rapidly “converge” to developed world standards. China is much better off in this respect, but its high growth trajectory may in turn be disturbed by energy shortages and environmental degradation. China produces half the world’s coal, which is patently unsustainable given its limited reserves. But since coal accounts for 75% of China’s primary energy consumption and fuels the factories that keep its workforce employed, there is little it can do to mitigate this dependence. Meanwhile, China’s overpopulation, pollution and climate change predicament is so well known as to not require elaboration. Many other countries flirting around the edges of BRIC status – Indonesia, South Africa, Vietnam, etc. – face serious challenges in the form of low human capital, uncertain energy and food supplies and a rising incidence of AGW-induced droughts, floods and heatwaves.

There is one global region that may hold the key to resolving these intertwined problems – and even to become a major pole of global growth in its own right. For the most part, it is now an empty wilderness, but climate change is opening it up as potential living space. Its exploitation has the potential to halve the length of global freight transport routes while increasing their security, uncover sizable to gigantic new sources of hydrocarbons and minerals, and stabilize global food prices through the expansion of arable land. Its experience of management and conflict resolution may inspire a global model of cooperation – or it may degenerate into an economic, legal, or even military battlefield over shipping routes and sub-sea resources.

This global region is the Arctic Rim, and its adjoining ARCS: Alaska, Russia, Canada, and Scandinavia. The ARCS of Progress in the 21st century.

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Karlin Freedom Index 2012

This is the Karlin Freedom Index for 2012, a political classification system I formulated more than a year ago in response to systemic bias on the part of traditional “freedom indices” such as Freedom House and The Economist Democracy Index (hint: they give massive bonus points for neoliberalism and pro-Western foreign policy orientations).

The explanation: Reconciling democracy with liberalism is really hard: since people are illiberal by nature, there is usually a trade-off between the two. The more frequent result is Semi-Liberal Democracy (describes most “Western” countries), which in turn can degenerate into a full-blown Illiberal Democracy (as did Russia around 1993, or the US and Hungary around 2011). Oligarchy is meant in the sense of rule by a few. It should be noted that some legislation ostensibly enacted to protect the public interest, such as libel laws, surveillance laws and anti-terrorist laws – in practice serve more to undermine liberalism. When they go too far, there appear Semi-Authoritarian states of permanent emergency. In the lower rung, Authoritarianism consolidates all political power unto the state (Semi-Authoritarianism tries to, but isn’t as successful). Totalitarianism extends the political realm over all spheres of life, bringing us into the realm of (Viereck’s) Metapolitics.

Liberal Democracy

  • Iceland – In the wake of its post-financial crisis constitutional reforms, this small country may claim to have the most direct democracy on Earth.
  • Netherlands
  • California (state government)
  • Germany
  • Finland
  • Sweden – Not as high as it might have been due to the politically-motivated prosecution of Assange.
  • Spain
  • Czech Republic

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Spooks, Mercs or Merchants over Iceland?

This is a reprint of a post from Arctic Progress.

KnAAPO-Su-35

Back when Iceland tipped over into financial collapse during 2008 and the UK seized Icelandic banks’ assets using anti-terrorist laws as fig cover, Icelandic President Olafur Ragnar stated that Russia could make use of the Keflavik air base in return for a $5bn loan to the insolvent country. However, fevered talk about Russia gaining a military foothold in the Atlantic, including gaining control over the crucial GIUK gap, didn’t end up amounting to anything concrete.

First, Iceland’s status as a NATO member precluded it from offering Russia a true air base in Keflavik; only something like a refuelling and maintenance depot would be allowed. Second, $5bn is not an insignificant amount of money in its own right, being equivalent to about 10% of Russia’s (official) military budget.

But if things couldn’t be worked out with Russia, a private mercenary company would do. Less Red Storm Rising, more Lord of War. TV station Russia Today mailed me a story by Robert Bridge on how Cash-strapped Iceland to host “private army” – and Russian jets. The company, which has a really slick website (and Twitter!), is seemingly flush with cash. They reportedly paid Iceland $160mn to gain rights to Keflavik airbase and plan to acquire 30 Su-27 fighters from Belarus for use in mock war games. If confirmed, this would make it the largest single order for military aircraft by a private investor.

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